Nov. 5 (Bloomberg) -- U.S. Commodity Futures Trading
Commission Chairman Gary Gensler will recuse himself from the
agency’s investigation of MF Global Holdings Ltd. amid concern
that his ties to the bankrupt firm’s former chief executive may
give the appearance of a conflict of interest, two people with
direct knowledge of the decision said.

Gensler decided this week against participating in the
probe of MF Global because of his history with Jon Corzine, said
the people, who spoke on the condition of anonymity because the
decision isn’t public.

Corzine, who stepped down as MF Global’s chairman and CEO
yesterday, worked with Gensler at Goldman Sachs Group Inc. and
during his term in the U.S. Senate, where Gensler served as an
aide.

The CFTC is trying to track down $593 million in missing
client funds at MF Global after the New York-based brokerage
sought bankruptcy protection on Oct. 31. Senator Charles
Grassley, an Iowa Republican, said yesterday that Gensler should
recuse himself from the investigation because of his “close,
longstanding ties” with Corzine.

Gensler couldn’t be reached for comment outside of normal
business hours.